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London November wheat closed unchanged (£155.50) although did trade £4 up at one stage before retreating as US markets fell. So far UK wheat trading has seen little change from last night’s close.
French wheat prices were down.
Recent volatility has provoked some buying but not in export markets, although we ‘should’ be price competitive.
Sterling remains largely unchanged as Brexit saga continues; UK car production halved due to Brexit and slowing Chinese demand.
Market direction / sentiment dictated by US markets.
Corn and wheat fell yesterday as profit taking took place, providing a correction. Overnight CBOT corn and wheat have recovered slightly but wait to see direction when US markets open.
Fundamentally nothing has changed, corn planting report for May 26th only 58% complete, below trade estimates. Wet weather continues to hamper planting progress and the next seven day forecast has much of the same, only slightly drying out in some states.
Brazilian corn exports in May doubled the April figure, high prices and weak Brazilian currency provided stimulus.
Conflict of opinion and sentiment, US markets firmly bullish but countered by prospect of big European and Russian crops.
author: Joe Beardshaw